Shares of Dr Reddy’s Laboratories surged 3% on 27 June after the company announced signing an agreement to acquire UK-based Haleon Plc’s global portfolio of consumer healthcare brands in the Nicotine Replacement Therapy (NRT) category outside of the United States. 

The acquisition involves purchasing shares of Northstar Switzerland SARL, a Haleon group company, for a total of GBP 500 million. This includes an upfront cash payment of GBP 458 million and performance-based contingent payments up to GBP 42 million, payable in 2025 and 2026.

The portfolio to be acquired features Nicotinell, a leading brand in the nicotine replacement therapy (NRT) category, with a presence in over 30 countries across Europe, Asia (including Japan), and Latin America. Nicotinell is the second-largest NRT brand globally (excluding the US) and ranks first or second in 14 of the top 17 global markets, with its lozenge or mini lozenge format being particularly successful.

The acquisition also includes market-leading brands like Nicabate in Australia, Thrive in Canada, and Habitrol in New Zealand and Canada. The deal encompasses all formats of NRT products, such as lozenges, patches, gums, and pipeline products, in all applicable global markets outside the US.

At 12:27 pm, the shares of Dr Reddy’s Lab were trading 2.18% higher at Rs 6,202.45 on NSE.